Business Environment Assignment Sample

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INTRODUCTION

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The business environment is about the sum of internal and external factors, these include consumer needs, workers, supply and demand, client, owners, suppliers and expectations. This factors can directly affect the production. The TUI group is the German leisure travel and tourism largest company overall the world. The aim is to analysis the significant impact on the organizational performance. The organization’s internal environment is about the composed of the elements which are within the organization. This includes the current workers, corporate culture and management; this defines the behaviour of workers. The factors about the organization’s environment can directly affect the decision making and performance. The factors include the marketing intermediaries, supplier, customers, public and competitors. The external forces such as demographic, legal, natural, technological, economic, political, culture and social are essential. This can influence the decision making of the organization and can put impacts on the organizational performance. The report will delves into the overview of the business, size, industry and sector operation, direct and indirect competitors and leadership team and structure of the organization. The report will shed light on impact on the increasing corporate tax rate after the impact on the TUI’s internal environment and how it recovers the challenges. The report will delve into the impact on the micro environment and how the organization has recovered from the challenges.

SECTION 1

Business overview

The TUI operates in the tourism business and provides the wide range of travel and holiday services. The organization involves the touristic airlines, cruise ships, resort and hotel, tour operations. The touristic airline organization operates in the medium to long haul aircraft (TUI AG: Overview, 2023). The globally operating tourism company is serving the 21 m consumers in the annual bases within the ecosystem. The tourism sector is showing and attracting and gaining the GDP growth for decades. The organization is offering the excellent basis of the business growth.

Size:

TUI group is the one of the biggest group on worldwide bases and this is the main key play in the market of package holidays. The organization own the 1200 travel agencies, 16 cruises liners, over 400 hotels, 130 aircraft and five European airlines. The organization has the strongest presence in the UK’s market with the large number of employees. In the year 2023 the organization operated over the 300 outlets in the UK. This is the one of the biggest leading travel agencies in the UK.

Sector and industry operations: The TUI organization operates in the tourism businesses; it offers the wide range of travel and tourism services. The organization includes the facilities tour operations, touristic airlines, hotels and resorts, cruise and ships. The organization has combined the 400 owned hotels, digital platform for 160,000 tours, expectations and activities, five airlines and 130 aircraft.

Direct and indirect competitors:

 The unique style of concept, strong portfolio of the cruise and hotels and direct distribution channels enables the organization to design the new kind of holiday experience. This gives direct competition in the market place of the TUI.

The organization has similar rivals such as Norwegian cruise line holding, HIS and Odenza marketing group. Due to the wide range of services the organization has numerous of competitors in the market.

Organizational structure and leadership team:

The competitors of the TUI group include companies such as Norwegian cruise line holding, HIS, Odenza marketing group. The TUI AG executive board have five members which group executive board of the 12 members. The organizational structure of the company is the quasi formal and formal network controlling and reporting the relationships and associated and powers the duties of each role in the network.

Figure 1 TUI Group, 2023

SECTION 2

Evaluating the impacts of increasing corporate tax rate after Brexit on TUI’s internal environment

The number of tax changes which arises due to the Brexit the TUI has to face some challenges with the operational changes.

Due to the Brexit the internal factors affected by the tax a rate, the business has faced the challenges related to the importer or exporter records of the travels. The higher tax rates have the put impact on the financial stability of the organization (Buijtendijk, van Heiningen and Duineveld, 2021). The organization faced the issues related to the resources connected to finance. By making use of the financial management the organization can set the budget and keep eye on the revenue which can reduce the impact of the budget allocation (Aburumman 2020). The organization can increase the larger government arrears boost the economic growth with the higher GDP and lower unemployment. The organization has the well-known brand image with the loyal customer base due to it the organization can expand more (Johann, 2022). The organization has the opportunity to expand more in the market place with the customer base.

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 Explaining How TUI can recover from challenges they are facing using internal environment 

The organization can recover from the challenges by committing for employee wellbeing and providing the training and development sessions and some finical challenges to recover from the internal environment. The organization needs to improve the culture for improving the workers work performance. This can stream line the cost value and revenue according to the needs of change. The external dependency can be resolve by the market positing which can reduce the economic factors. The business can invest in the advisory services to resolve the issues related to the changing tax laws and reduce the risk. To reduce the challenges the TUI can work on the innovation to find out the solution related to the cost effectiveness and on-going services.

SECTION 3

Analysing impacts of increasing corporate tax rate after Brexit on TUI’s micro-environment

Pestle tool provides high level of assistance in evaluating business activities and related aspects effectually (George, 2021). Referring outcome, TUI can develop competent strategies that contribute in organizational success.

Due to Brexit, it has increased the corporate tax rate which is put numerous of impact on the financial stability of the TUI. The brexit has numerous of negative impact on the organization and its operations.

Evaluating How TUI can recover from challenges they are facing using micro-environment.

The organization can use financial strategies to reduce the challenges related to the taxes Due to which the TUI can stay competitive within the market place. The organization can use the marketing strategies to reduce the impact on the higher taxes (Barabanova, Bohatyryova and Gorina, 2020). TUI can work on the adopting the new offering which can be related to societal factors. To reduce the environmental factors organization needs to focus on the sustainable friendly practices to reduce the impact on environment. The organization can promote the eco-friendly steps to recover from the challenges. The government bodies can offer the new changes in the tax policies and organization can stay updated about the changes and can be useful for it. By diverse offering the organization can improve the customer base and attract the customers more (Holloway and Humphreys 2022). The organization can regular review about the changing demands of the customers and make sure about the customer preferences to stay updated about it. The Eco-friendly practices can change the travel industry and now the customers are more concern about the eco-friendly practices.

SECTION 4

The impacts of PESTLE factors on TUI’ operations

Evaluating How TUI can recover from challenges they are facing using macro-environment

The TUI has diversity in the market place so the political stability put the impact on the organization. These impacts can be reduced by the adoption of the stable operations. The main focus is about to reduce the risk. The organization has to work on the economic strategy which can adjust the pricing and stay in the competitiveness. The organization can offer the new range so it can attract more customers (Leighton and McKeown 2020). The regular technology investment can improve the operations and help in fostering the customer services. The usage of the technology can be beneficial for the organization to improve the position in the market (Papadopoulou-Kelidou and Papatheodorou, 2023). The strong sustainable practices can enhance the success of the organization and promote the environmental friendly practices (Aburumman, 2020). The TUI can reduce the challenges with the legal changes so it can process the position.

CONCLUSION

By summing up the report it delves into the impact of the corporate tax rate due to the Brexit on the internal environment. The organization should make sure about the tax policies of the government need to align with the regulations. By making use of the technology and adopting the innovation can be beneficial for the organization. By focus on optimising the internal procedure the organization can work on the tax rates. The organization should invest the funds in the wellbeing of workers which can promote the positive working environment for the employees. The organization must invest in the trainings for the workers to develop the skills and they can work better. By making use of the global partnership to improve the sustainable friendly practices the organization can strengthen the brand image among the customer base. The practices should be align with the sustainable friendly practices reduce the risk of pollution and carbon foot print. For entry in the new market the organization can face the challenges about the regulatory to reduce the risk it can work with the global partnership. The TUI has to invest in the technology advancement to improve the online platform which can increase the customer base and increase the engagement. To implement the technology uses it need huge amount of investment. The TUI can investment for the long term and can have the benefits. The organization can focus on collaboration with the tech companies to stay updated about the trends. The regular changes in the technology are essential for the growth and achievement of the goals.

REFERENCES

Books and Journals

• Aburumman, A.H., 2020. The concept of global governance in tourism franchises: a case study of TUI group. Entrepreneurship and Sustainability Issues, 8(2), p.1321.
• Atherton, J., 2023. Social media strategy: A practical guide to social media marketing and customer engagement. Kogan Page Publishers.
• Barabanova, V.V., Bohatyryova, G.A. and Gorina, G.O., 2020. Marketing mechanisms of tourist industry development in an unstable environment. Journal of Geology, Geography and Geoecology, 29(4), pp.625-636.
• Buijtendijk, H., van Heiningen, J. and Duineveld, M., 2021. The productive role of innovation in a large tourism organisation (TUI). Tourism Management, 85, p.104312.
• George, R., 2021. The Tourism and Hospitality Marketing Environment. In Marketing Tourism and Hospitality: Concepts and Cases (pp. 183-219). Cham: Springer International Publishing.
• George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and Hospitality: Concepts and Cases (pp. 149-182). Cham: Springer International Publishing.
• George, R., 2021. Marketing tourism and hospitality: concepts and cases. Springer Nature.
• Holloway, J.C. and Humphreys, C., 2022. The business of tourism. Sage.
• Johann, M., 2022. CSR Strategy in Tourism during the COVID-19 Pandemic. Sustainability, 14(7), p.3773.
• Leighton, P. and McKeown, T., 2020. Work in challenging and uncertain times: The changing employment relationship. Routledge.
• Papadopoulou-Kelidou, L.L. and Papatheodorou, A., 2023. All-inclusive holiday packages in the post-covid-19 era. In Routledge Handbook of Trends and Issues in Tourism Sustainability, Planning and Development, Management, and Technology (pp. 288-294). Routledge.
• Visser, M., 2021. Strategy and Business Models. In Digital Marketing Fundamentals (pp. 30-66). Routledge.
• Online
• TUI AG: Overview. 2023. Online. Available through: <https://www.globaldata.com/company-profile/tui-ag/#:~:text=It%20provides%20a%20wide%20range,%2D%20to%20long%2Dhaul%20aircraft.>
• TUI Group Competitors and Similar Companies. 2023. Online. Available through: <https://craft.co/tui-group/competitors>
• TUI Group, 2023. Online. Available through: < https://theorg.com/org/tui-group>.